Vietnam on the Brink of Becoming a Labor Importer: A New Facet of Economic Growth

Vietnam, traditionally known as a country that sends its workforce abroad, is showing signs of potentially becoming a labor-importing nation, actively accepting foreign workers. Dr. Le Hong Hiep from the ISEAS Institute in Singapore, citing a photo of over 250 Bangladeshi workers at ATAD Dong Nai Steel Structure Company, analyzes this phenomenon as "unusual" and indicative of a "structural shift." He argues it is a "consequence of Vietnam's economic success rather than a sign of weakness," according to an article on Fulcrum, an ISEAS publication, dated July 13. According to the Ministry of Interior, as of the end of 2025, approximately 162,858 foreign workers from around 110 countries and territories are employed in Vietnam. Of these, over half are skilled laborers (85,951), less than a third are experts (44,342), while managers account for about 14% (22,416) and CEOs for 10,149. Chinese nationals constitute the largest proportion (31.3%), followed by South Koreans (18.5%), Taiwanese (12.9%), and Japanese (9.5%). The total figure is higher than the reported numbers for 2024 (161,992) and 2023 (136,800), indicating a gradual upward trend in recent years. In comparison, by the end of 2025, nearly 900,000 Vietnamese laborers are working abroad, primarily in East Asian economies such as Japan, Taiwan, and South Korea. This figure does not include undocumented Vietnamese workers, who are present not only in Asian countries but also in Europe and Africa. From a nation renowned for abundant labor for other countries, Vietnam is "increasingly importing labor to maintain factory operations and construction sites, not because the economy is weakening, but because it is growing," according to Dr. Hiep, who points to four factors driving this trend. The first factor is that Vietnam is rapidly aging before it gets rich. The number of people aged 60 and over is projected to reach nearly 30 million by 2034, meaning "the number of young Vietnamese joining the labor market each year will decrease, even as factories continue to open." The second factor is the shortage of low-skilled labor, amidst the proliferation of FDI-funded factories that struggle to recruit enough personnel. Dr. Hiep cites nearly a quarter of a million laborers in Bac Ninh province alone this year, while a survey of 30 enterprises in late December 2025 indicated they could only recruit less than 10% of their total demand of 35,000 people. Meanwhile, the domestic labor shortage is also making it difficult for the government to meet its target of sending approximately 112,000 laborers abroad this year, according to Deputy Minister of Interior Vu Chien Thang on June 26. The upgrading of Vietnam's economy and the gradual shift of domestic labor to higher-skilled, higher-paying jobs is another factor explaining the "import" of foreign labor. The final factor, according to Dr. Hiep, is Vietnam's ambition, where massive infrastructure projects are creating significant labor demands, such as the Long Thanh Airport. The latest report from Airports Corporation of Vietnam (ACV) on July 13 indicated that the Long Thanh Airport project is facing significant pressure due to a shortage of approximately 1,668 workers, concentrated mostly in packages 5.10 and 4.8. In this context, recruiting foreign labor is not "undesirable"; rather, it is "counterproductive when a management system prevents businesses from hiring them when there is a genuine labor shortage," according to Dr. Hiep. In May, the Ministry of Interior stated there were inadequacies in the implementation of Decree 219/2025/ND-CP on foreign workers in Vietnam, requiring changes "to suit the development needs in the new situation." This draft decree, developed with the spirit of "maximum barrier removal," was open for public comment from May 2025 to June 9. The draft submission pointed out a series of limitations to be addressed, including issues in fields like artificial intelligence, semiconductor technology, quantum technology, and new energy, where the mechanism for certifying experts based on years of experience is not suitable, despite Vietnam's urgent need for experts and highly skilled foreign laborers. Furthermore, the old regulation only accepted health certificates issued by medical facilities in Vietnam, forcing foreign workers to enter Vietnam to obtain them before submitting applications for work permits or confirmations of non-exemption, a process that "increases costs and wastes time for both workers and employers," according to the Ministry of Interior's draft submission. The increase in labor imports in countries with a history of labor exports is not new; South Korea is an example with many lessons. The "Land of the Morning Calm" transformed from a net labor exporter in the 1960s and 1970s – when it sent tens of thousands of miners and nurses to West Germany and construction workers to the Middle East – into a labor importer, including many Vietnamese. By the late 1980s, economic booms prompted the government to reform policies to attract immigrant labor. At that time, business organizations like the Korea Federation of Small Businesses (KFSB) continuously petitioned the government to allow the import of foreign labor. However, this faced criticism, as workers from the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KTUC) vehemently opposed it, fearing it would jeopardize their jobs, according to a research paper by Professor Dong-Hoon Seol from Jeonbuk National University. Dr. Le Hong Hiep believes that the Vietnamese government must establish a "flexible" legal system for foreign workers while continuing to train and upgrade the skills of its domestic labor force. To date, the Vietnamese government has not had a specific policy to position itself as a labor-importing country. This differs from the Law on Vietnamese Citizens Working Abroad Under Contract, which took effect in 2022, alongside numerous agreements for receiving Vietnamese workers in many countries worldwide. In a related development concerning foreign labor, the government recently allowed foreign workers employed in Vietnam to join and operate within grassroots trade unions from July 1, 2025, according to the amended Trade Union Law. © 2026 BBC. BBC is not responsible for the content of external sites. Learn how we link to external websites.